Malaysians will soon be able to claim up to RM3,000 in tax relief for life insurance and takaful premiums, following the expansion of the existing relief to include policies for children. The measure, announced by Prime Minister Datuk Seri Anwar Ibrahim under Belanjawan MADANI 2026, is aimed at easing household expenses and encouraging families to strengthen their financial protection.

Broader Coverage For Families

Previously, the RM3,000 relief applied only to life insurance or family takaful plans covering the policyholder or their spouse. Under the new provision, parents will now be able to claim tax relief for premiums paid on policies that protect their children.

The move is intended to make family insurance more affordable and to encourage parents to prioritise financial preparedness and protection for their dependents.

Affordable Basic Health Insurance

To further improve access to coverage, the government and the insurance industry will jointly create a RM60 million fund to develop affordable basic health insurance products. These new offerings will be designed to help Malaysians, particularly those in lower- and middle-income groups, access medical protection at a manageable cost.

Continued Support For Low-Income Malaysians

The stamp duty exemption for small-value insurance and takaful policies, including Perlindungan Tenang products, will be extended until 2028. These simple and affordable plans provide basic protection for the B40 community and small business owners who may not have conventional insurance coverage.

The MySalam programme will also continue, offering hospitalisation and critical illness protection for lower-income groups. Since its introduction, MySalam has paid out over RM1.2 billion in claims, benefiting 1.7 million Malaysians.

Stay tuned for more updates from Budget 2026.

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• TAGS:
• Affordable Premiums
• budget 2026
• Health Insurance
• Insurance
• Stamp Duty Exemption
• Tax Relief